Monday, November 26, 2012

LPS released their First Look report for October today. LPS reported that the percent of loans delinquent decreased in October compared to September, and declined about 7% year-over-year. Also the percent of loans in the foreclosure process declined sharply in October and are the lowest level since August 2009.

LPS reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) decreased to 7.03% from 7.40% in September (delinquencies increased seasonally in September). Note: the normal rate for delinquencies is around 4.5% to 5%.

The percent of loans in the foreclosure process declined to 3.61% from 3.87% in September.

The number of delinquent properties, but not in foreclosure, is down about 10% year-over-year (400,000 fewer properties delinquent), and the number of properties in the foreclosure process is down 19% or 412,000 year-over-year.

The percent (and number) of loans 90+ days delinquent and in the foreclosure process is still very high, but the number of loans in the foreclosure process is starting to decline fairly quickly.

LPS will release the complete mortgage monitor for October in early December.

LPS: Percent Loans Delinquent and in Foreclosure Process

Oct 2012

Sept 2012

Oct 2011

Delinquent

7.03%

7.40%

7.58%

In Foreclosure

3.61%

3.87%

4.30%

Number of properties:

Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:

1,957,000

2,170,000

2,219,000

Number of properties that are 90 or more days delinquent, but not in foreclosure: